Athene, the retirement services company and subsidiary of Apollo Global Management, has announced that it intends to enter a block reinsurance transaction with Sony Life Insurance Co Ltd, a top-rated Japanese insurer.

As part of this transaction, Athene will reinsure an in-force block of US dollar- denominated whole life insurance policies and partner with Swiss Re, another leading reinsurer, to retrocede all mortality risk associated with the block.

Katie Daly, the executive vice-president and global head of mergers and acquisitions, reinsurance and pensions at Athene, said: “Japanese insurers are increasingly turning to more tailored solutions and flexible capital to enhance their financial strength and advance policyholders’ goals.

“Our retirement and capital expertise put us in a strong position to address needs unique to the Japan market.”

Yasuo Kashiwagi, the head of Japan at Apollo added: “Apollo and Athene’s growing presence in Japan is a direct result of our differentiated model’s ability to bring in capital to support Japanese policyholders.

“The combination of balance-sheet strength and world-class asset management capabilities fits well with deeper shifts under way in Japan and enables us to provide safe yield solutions to Japanese retirees and savers in an aligned way.”

The agreement marks Athene’s eighth reinsurance transaction across seven cedants, and its second block reinsurance transaction with Japanese insurers since entering the market five years ago, the company said.

This brings the total volume of Athene’s reinsurance transactions with Japanese cedants to approximately $19 billion.